Going public
How an IPO moves from filing to first trade
An initial public offering follows a defined sequence of stages. Each one has its own purpose, documents, and participants, and understanding the order makes the whole process easier to follow.
The formal phases
Four stages of the offering
1. Underwriting and filing preparation
Investment banks are appointed as underwriters, and the company builds its valuation model. Regulatory review shapes the registration statement that will be filed for public review.
2. Prospectus and roadshow bookbuilding
The prospectus outlines company financials, risk factors, and capitalization structure. Underwriters gather investor indications of interest during the roadshow to build the order book.
3. Share pricing
Based on demand in the order book, the issuer and underwriters set the final offer price and the number of shares offered.
4. Listing day and market debut
The opening cross establishes the first trade price, specialist allocation takes place, and shares begin trading on the secondary market, followed by settlement.
Terms to watch
Key terms across every stage
Underwriter, prospectus, order book, opening cross, and settlement each name a distinct step. Keeping these terms in view makes each phase of the offering easier to track.